Guide to Residency for Foreign Investors in Malta
Malta, a Mediterranean island nation, offers an attractive residency program for foreign investors seeking a European base. Known as the Malta Permanent Residency Program (MPRP), it provides a pathway to obtaining permanent residency in Malta while enjoying a favorable tax regime and high quality of life.
Eligibility Criteria
To qualify for the MPRP, foreign investors must meet the following criteria:
- Age: 18 years or older
- Financial means: Proof of sufficient funds (minimum €500,000)
- Property investment: Purchase or rent a qualifying property in Malta (minimum value: €350,000 for purchase or €10,000 per year for rent)
- Government contribution: Make a non-refundable contribution to the National Development and Social Fund (NDSF) (minimum €30,000)
- Due diligence: Pass a rigorous due diligence process conducted by the Maltese authorities
Application Process
- Select an authorized agent: Appoint a licensed Maltese agent to assist with the application process.
- Gather required documents: Prepare all necessary documents, including proof of identity, financial means, property investment, and due diligence.
- Submit application: Submit a complete application to the Identity Malta Agency (IMA).
- Due diligence process: The IMA will conduct a comprehensive due diligence check on the applicant.
- Approval: If the application is approved, the applicant will receive a Residence Permit.
Benefits of MPRP
- Permanent residency: Grants permanent residency in Malta without the need for citizenship.
- Travel freedom: Residents can travel freely within the Schengen Area (26 European countries).
- Favorable tax regime: Non-domiciled residents benefit from a flat 15% income tax rate on foreign income.
- Access to healthcare: Residents have access to Malta’s high-quality healthcare system.
- High quality of life: Malta offers a safe, stable, and cosmopolitan environment with a pleasant climate and rich cultural heritage.
Property Investment Options
Foreign investors can choose from a range of property investment options to qualify for the MPRP:
- Purchase: Acquire a property with a minimum value of €350,000 in designated areas of Malta or Gozo.
- Rent: Lease a qualifying property in Malta for a minimum annual rent of €10,000. The property must be located in a designated area and meet specific requirements.
Contribution to NDSF
Non-refundable contributions to the NDSF are required as follows:
- Main applicant: €30,000
- Spouse: €25,000
- Dependent children (under 18): €15,000
Maintenance of Residency
To maintain permanent residency in Malta, investors must:
- Retain their property investment or continue paying rent.
- Spend a minimum of 90 days per year in Malta.
- Maintain sufficient financial means.
Additional Considerations
- Citizenship: The MPRP does not automatically lead to Maltese citizenship. However, after five years of residency, investors may apply for citizenship through naturalization.
- Tax implications: Investors should seek professional tax advice to understand the tax implications of their residency status.
- Due diligence: The due diligence process is thorough and can take several months to complete. Applicants should provide accurate and comprehensive documentation.
Conclusion
The Malta Permanent Residency Program offers foreign investors an attractive pathway to residency in a European country. By meeting the eligibility criteria and investing in Malta’s real estate market, investors can secure permanent residency, enjoy tax benefits, and enhance their quality of life in a vibrant and welcoming island nation.